But hopefully we get what we need.

Riverplace Capital wanted the process of normalization of interest rates to begin; the Federal Reserve recently decided to delay once again. Why; not because of domestic economic issues, but a nod to weakness internationally. Maybe it was a show of deference to the IMF and the World Bank; both asked the Fed not to move at this time. The major concern seems to be for relative currency values and their impact on nascent recoveries elsewhere.

All this is just supposition; the fact is we still have interest rates that are too low in the U.S. This has negative implications. Low rates enable bad allocation decisions with consequences when rates rise. They also reinforce a mindset that the economy is weak which dissuades normal investment. Rates will rise; it’s just the timing has again become uncertain. However, just like a “rolling stone” reacting to gravity, it is inevitable.

Stay steady my friends.

The Lonely Bull